Free Trial

Firms Above $1.07, RBA On Tap


AUD/NZD has firmed from below the $1.07 handle after printing its lowest level since mid April ($1.0683) on Friday.

  • The pair now prints at $1.0740/50 after being supported below $1.07 on Monday.
  • We now sit below the 20-Day EMA ($1.0780), bears target a break of the low from April 28 ($1.0683) from here look to test year to date lows at $1.0588.
  • Bulls first look to break the 20-Day EMA, then the 200-Day EMA ($1.0867) to turn the tide.
  • Rate differentials, observed via 2 year swap rates, have widened a touch. We now sit at -146bps, however we remain above cycle lows of -165bps seen in early April.
  • The RBA's latest monetary policy decision today presents the next risk event, the bank is expected to hold policy unchanged at 3.6%. The MNI preview is here.
Fig 1: AUD/NZD Daily Spot, EMAs

Source: MNI/Bloomberg

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.